BC Partners creates German and central European lab group
publication date: Sep 1, 2009
Private equity house BC Partners is set to buy 40% of German lab player Synlab and all of FutureLab which covers Switzerland, Austria, the Czech republic, Romania and Hungary. Observers say it snatched Futurelab from under the nose of private equity house Mid Europa, which had nearly closed a deal with its canny owner Professor Michael Havel.
Together, the two will have a combined headcount of over 4,000 employees and 2009 sales of around Euro 380m. FutureLab sales came to Euros 148m in 2008.
BC had to pay a high multiple for FutureLab to beat Mid Europa, say sources close to the deal who indicate that it paid 9.5-10 times EBITDA of Euros 32m.
FutureLab’s operations are strong in the Czech Republic and Switzerland. The company has been for sale for at least 18 months and has been looked over by several private equity houses. We interviewed Prof Havel in March when he gave us market size data for central European countries. Competitors say FutureLab will be badly affected by Swiss reforms.
Synlab could well have been considerably cheaper.
Synlab is a big player in Southern Germany and the third largest in Germany behind Australian multinational Sonic Healthcare and Limbach Laboratory Heidelberg, coming in just ahead of Detlef Kramer. Together, the top four have 60-70% marketshare. The total test market in Germany is estimated at €10bn out of a total healthcare market of €240bn. Synlab also has a minor presence in eastern Europe and the Middle East.
Our Analysis: At around Euros 500m this is one of the largest healthcare deals this year. FutureLab gives the new combined group access to the middle European markets which may, possibly, expand fast over the next decade. Let's hope for Prof Havel's sake that the deal does go through - after spurning Mid Europa at the altar he would have a hard time finding another suitor!
Together, the two will have a combined headcount of over 4,000 employees and 2009 sales of around Euro 380m. FutureLab sales came to Euros 148m in 2008.
BC had to pay a high multiple for FutureLab to beat Mid Europa, say sources close to the deal who indicate that it paid 9.5-10 times EBITDA of Euros 32m.
FutureLab’s operations are strong in the Czech Republic and Switzerland. The company has been for sale for at least 18 months and has been looked over by several private equity houses. We interviewed Prof Havel in March when he gave us market size data for central European countries. Competitors say FutureLab will be badly affected by Swiss reforms.
Synlab could well have been considerably cheaper.
Synlab is a big player in Southern Germany and the third largest in Germany behind Australian multinational Sonic Healthcare and Limbach Laboratory Heidelberg, coming in just ahead of Detlef Kramer. Together, the top four have 60-70% marketshare. The total test market in Germany is estimated at €10bn out of a total healthcare market of €240bn. Synlab also has a minor presence in eastern Europe and the Middle East.
Our Analysis: At around Euros 500m this is one of the largest healthcare deals this year. FutureLab gives the new combined group access to the middle European markets which may, possibly, expand fast over the next decade. Let's hope for Prof Havel's sake that the deal does go through - after spurning Mid Europa at the altar he would have a hard time finding another suitor!